Buying disability insurance

[Rich]

Does anyone have any experience buying disability insurance? Any guidelines?
Thanks,
Rich

[gene]

I'm not sure what country you are in. I think that would make a difference.

Here in the USofA:

Workers Comp is disability insurance - government controlled and government corrupted. Check with your state workers compensation board.

Social security has disability insurance aspects to it if you are old enough.

I used to have private disability insurance where I would get a certain amount of money, per month, for a specific number of years. The amount of money would depend on the disability. If I lost one arm, that would not be as much as if I lost both arms. My policies were very specific to what I could loose and what I would get paid. Certainly the most payout was for total inability to work. Check with your insurance agent.

Don't be like that firefighter a week or two ago in California who was getting full disability from the state for work related injuries and fighting in Mixed Martial Arts fights at night to make a few extra bucks. He was arrested and charged with 4 felon counts.


gene

[Rich]

Well, I used to live in NYC and to some people, that's a whole other planet, but these days I'm in Maryland. Actually, I never realized that my profile doesn't say that. I'll update it.

I've always thought that workman's comp was for employees and not for the self-employed. Am I wrong?
Thanks,
Rich

[kodydog]

Your right. Self employed don't pay into workman's compensation and we can't claim it if we get sick or injured. Self employed insurance is the best you can do, if your worried. There is also medical disability. A form of social security if you are permanently disabled.

[gene]

Here in Ohio workers comp is required for anyone who has employees, even if that is 1 part time employee.

Sole proprietors and Limited Liability Company owners who have no employees are not required to have workers comp for themselves, but they can pay into it if they choose to.

gene

[Ageorge]

Yes, like gene, I'm in OH, and pay into it for myself. It's not that much per month either...

[timtheboatguy]

I had Aflac for a while but droped it to cut back on expences. I never had to use it so I cannot say much about the company.

[Rich]

"if I'm worried"; In my business, my wife is the only employee, P/T doing AP and AR and I do everything else, so if I were to become disabled, there would be NO business. Yeah, I'm at least a little worried.
Over the years I've gotten quotes of around $200.00 to 250.00/month which makes me wonder if it's worth such a high expense, so I've not bought it. Recently, I got a quote from an agent of $100.00-150.00/mo (depending on coverage) that is much more manageable, but I'm not to happy with their rating, so where's the peace of mind there?
Rich

[kodydog]

My wife is the one in our family who worries. And in my opinion we are over insured. But I never argue with her because it gives her peace of mind. Like Rich she asks, but what if something happens to you. My reply is,

1. What do you think is going to happen? Worry is a misuse of imagination.  ~Dan Zadra.
Do not anticipate trouble or worry about what may never happen.  Keep in the sunlight.  ~Benjamin Franklin

2. Have confidence that we can handle any emergencies that come our way. And we always have.

One thing we have done is build an emergency fund. Say 4 to 6 months wages. $200 to $250 a month will add up fast. Put it into a CD or money market and make a little money off it. And use it only for emergencies. A down payment on a new car because yours just broke down is not an emergency.

[gene]

I tell my wife that if I die, I'll be dead. What would I care about anything?

Well, actually, I only told her this once.

gene

[Rich]

I tell my wife that if I die, I'll be dead. What would I care about anything?

Actually, my wife would be better off if I die than if I'm disabled. Life insurance is cheaper than disability insurance and she'd be the only one drawing off of it.

Kody, I tend to think more like "Expect the best, plan for the worst".
But anyway, you must save a lot having no insurance eh?

Rich

[kodydog]

I'm not trying to talk anyone out of buying insurance. Just as soon as you forgo the expense, something will happen and you'll wish you had it.

I've had home insurance for over 30 years and have used it once for a pipe leak that I could have paid for my self.

We went through hurricane Hugo and our shop was destroyed. We were renting so the building was the landlords problem but the contents were our problem. And we regrouped and pushed on.

My wife had a bout of skin caner. The deductible was so high and with all the clauses in the policy we ended up paying for it out of pocket. (Doctors are very leery of cash paying patients)

We have had 3 claims on car insurance in the last 30 years. All could have been payed out of pocket but because auto insurance is mandatory we filed with our insurer.

My wife recently got bit by a neighbors dog. At first he said he would pay the expenses. But when he said his insurance would handle it we hired a lawyer to make sure all was in order. Between the insurence company and the lawyer the bill will be 5 times higher.

I've never had dental insurance but manage to visit twice a year and pay for any dental work out of pocket.

We've never had pet insurance but have helped two dogs through cancer, one dog through degenerative myelopathy and one dog through neck surgery.

It just seems like you could spend your entire income on insurance.

My point is I've paid all this insurance over the years and with all the deductibles and clauses it seems it would be cheaper to just pay out of pocket or self insure.

[sofadoc]

My point is I've paid all this insurance over the years and with all the deductibles and clauses it seems it would be cheaper to just pay out of pocket or self insure.

I don't know. My wife has had her thyroid, and gall bladder removed. Those 2 surgeries alone would equal more than 10 years of premiums for the entire family. Over the course of our life so far, we're way ahead having health insurance. But our insurance is through my wife's employer. I know that self-employed insurance is a different story.

With home and auto insurance, you really don't have a choice if there's a mortgage involved.

I agree about dental insurance. Dentists just consider your insurance money to be "icing on the cake".
You're better off just paying them out of pocket.

Around here, doctors LOVE cash patients. They'll cut you a deal if they don't have to file on your insurance. One thing I've learned. If a Doctor's office says "We're not accepting insurance patients at this time", that's usually code for "We're under investigation by the insurance company right now".

[kodydog]

Around here, doctors LOVE cash patients. They'll cut you a deal if they don't have to file on your insurance.

Ya know Sofa, that's what I always heard and thought. Until we had to find doctors for issues my wife was having. We had to beg the skin cancer doctor to see us. (One of the best in Florida). We told him our deductible would be to high and we would have to pay cash. He finally said OK but made us put a down payment first. I guess in Florida there is a big problem with deadbeat cash paying patients.

[byhammerandhand]

Around here, doctors have a "list price."   When the insurance pays they pay a pre-negotiated rate and write off the rest.  I've had bills for a couple of hundred that the insurance paid less than $50.   I have a feeling the cash customer would pay the list price, but I'm not sure.